India’s two largest IT service providers, Infosys and Tata Consultancy Services (TCS), have announced they will continue to hire thousands of new graduates from engineering colleges in the current financial year, despite an expected slowdown in revenue growth due to a challenging economic environment.
Infosys and TCS to Hire Thousands of Graduates
Infosys recently stated that it plans to hire 20,000 fresh engineering graduates during this financial year. This hiring plan is in line with TCS, which also intends to maintain its commitment to hiring 42,000 new employees annually. However, Wipro has opted to adjust its campus recruitment strategy based on current demand conditions.
Hiring Plans Depend on Market Conditions
The success of these hiring efforts will largely depend on the ability of these companies to secure new projects and attract more business deals. While the demand for IT services has been slowing down, the companies are optimistic that increased deal inflows will help them continue their recruitment plans. However, if market conditions worsen further, these companies might need to proceed more cautiously.
Slower Hiring in Recent Years
The pace of hiring has already been slowing over the last few financial years, particularly as these IT giants adjusted their workforce after a rapid increase in staff following the pandemic. Additionally, the demand for large numbers of software engineers has declined as automation tools and AI systems now handle more entry-level tasks, reducing the need for manual coding.
Infosys and TCS Headcount Growth
As of March 31, Infosys had increased its total workforce by 6,338, bringing its total number of employees to 323,578. However, voluntary attrition, or the rate at which employees voluntarily leave the company, rose to 14.1% during the fourth quarter, compared to 12.6% a year earlier. On the other hand, TCS added 6,433 employees over the year, and Wipro added just 732.
Salary Increases and Employee Benefits
Infosys also mentioned that salary hikes for the remaining employees will be implemented starting in April. The company had already rolled out wage increases for many employees in January, and the rest will be effective from April 1. These hikes range between 5% and 8% on average, which is lower compared to previous years.
Infosys evaluates employee performance in four categories: outstanding, commendable, met expectations, and needs improvement. This performance assessment system helps determine the salary hikes and promotions for employees.
